A possible merger between Elon Musk’s rocket company SpaceX and carmaker Tesla may face bigger obstacles from politics than from regulation, drawing scrutiny in Beijing and potentially igniting a battle between US President Donald Trump and the Democrats.
\n\nMusk revived speculation about a tie-up this week, calling a combination "a good idea" and confirming that committees at both companies were reviewing a potential deal, a step toward what could become the largest merger in history and create a company worth about $3.5 trillion.
\n\nBut a merger would also unite one of the US government’s most important aerospace and defence contractors with one of the most China-exposed major American manufacturers — a combination likely to raise questions about national security risks both in Washington and in Beijing.
\n\nThose concerns are unlikely to derail a deal, analysts said, but they would likely leave the combined company exposed to years of political wrangling and pressure from both sides of the Pacific.
\n\nTesla’s China operations, they said, could become a source of leverage for Beijing in any future dispute with Washington, while a Democratic takeover of the US House of Representatives in next month’s midterm elections could subject the deal to congressional investigations and…
Original source: https://www.cnbctv18.com/technology/
